I'm Angeline on our sector today is electric vehicles, and our guest is Patrick Healy.

Off caliber financial partners.

Tesla's stock market rally is well publicized, but the industry makes up not only coal makers but chipmakers on telecommunications companies.

Among a long list of tech firms that form part off this sector.

The Stocks Global Electric Vehicle index is one of only a handful of indexes attract the sector and includes big players such as Tesler, China's Be wide and South Korea's Kia Motors as its top holdings.

It's up 36% over the past year, while this index, the S and P can show evey index is up over 200%.

But despite these gains, there are many challenges facing A sector has low penetration on a heavy reliance on subsidies.

So should investors be putting their money into the sector for more On this?

I'm now joined by Patrick Healy, the president, off caliber financial partners.

How much of the recent gains our policy driven can policy shift consumer behavior?

Yeah, there's definitely a lot of investor enthusiasm and sentiment towards where the puck is going, so to speak, and certainly with the new administration coming in and there, commitment and desire towards a greener economy.

Ah, lot of investors and some speculators are front running that that initiative, Um, there will be a lot of money spent on green infrastructure that supports the electric vehicle market and all of the tension markets accordingly.

But I think there's a lot of enthusiasm.

I think you need to be invested in the space because that's where the puck is going, as I said, and I think you certainly want to spread your bets around and not be too concentrated in any one day, Patrick valuations are now quite advanced.

There is this froth justified, given low levels of sales, a lack of infrastructure and reliance on government subsidies.

Yeah, whether it's justified or not, that's what makes the market.

But we're in a very accommodative monetary policy environment, zero interest rates and the Fed has committed to keeping them very low for the next several years, so that gives investors a lot of confidence that they don't have rates creeping up on them in the short term.

So that's a runway to invest and clearly that the move towards a greener economy has a lot of legs.

It's not a speculative trade valuations, maybe getting a little ahead of ourselves.

But it will be up to the management of the companies to deliver on the revenue projections that they've stated in their communications.

So if you want to position yourself in the sector, how would you get in?

Which sub sectors would you look into?

Is it raw materials?

Is it the technology?

Yeah, I'm certainly invested in electric vehicle companies, start ups as well as more mature companies.

Battery technology.

I think it's still a little bit further out on the horizon, and you've seen some real froth in some of those names.

I think ultimately it will be a game changer for the industry.

Um, but we may be four or five years out on some of that battery technology on Finally, Patrick, would you buy a hold or a sell on this sector?

I'm long and I'm a long term investor, So I am committed to holding my position through volatility, and you're going to experience that?

Um, just a word of warning.

As an investor, if you're inexperienced, you probably wanna get exposure through E T f or a handful of E T F.

Just because you have the manager that could make those decisions for you and check emotions at the door.

But I am very bullish on the sector.

Long term.

I'm not trying to get too caught up in the short term volatility because I'm expecting that to take place.

Thank you very much.

That was Patrick Healy off caliber financial partners.

Before I go, here are some of the top stories in the sector.

US.

President Joe Biden has vowed to replace the U.

S.

Government's fleet of 650,000 vehicles with electric models as part of a policy shift towards clean energy.

Biden made the comments in a speech on Monday in which he also pledged to Onley by E.

V s that were made in America as of July 2020 the U S government owned Onley 3215 electric vehicles.

It would cost $20 billion orm, or to replace the entire fleet.

Well major Royal Dutch Shell announced it is buying the owner off Britain's biggest EV charging network, You Beatrice City.

The deal to acquire 2700 on street charge points will be completed by the end of the year on his part of shells aimed to become net zero emissions by 2050 or sooner on finally US charging network.

E V Go Services has agreed to go public through a merger with a special purpose acquisition company named Climate Change.

Crisis.

Real Impact in a deal that values evey go at $2.6 billion this so called SPAC deal is the latest in the E V space, which has seen Nikola and Fiscal go public through this route.

That is your roundup of the electric vehicle sector.

I'm Angeline on and this is Reuters.